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RCN Redcentric Plc

132.00
0.00 (0.00%)
Last Updated: 16:17:12
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Redcentric Plc LSE:RCN London Ordinary Share GB00B7TW1V39 ORD 0.1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 132.00 36,974 16:17:12
Bid Price Offer Price High Price Low Price Open Price
132.50 139.50 132.00 132.00 132.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Computer Related Svcs, Nec 141.67M -9.25M -0.0589 -22.41 207.23M
Last Trade Time Trade Type Trade Size Trade Price Currency
15:00:46 O 8,475 136.00 GBX

Redcentric (RCN) Latest News

Redcentric (RCN) Discussions and Chat

Redcentric Forums and Chat

Date Time Title Posts
20/5/202412:24Redcentric - Managed Network Services1,098

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Redcentric (RCN) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
14:00:47136.008,47511,526.00O
13:47:10132.003,8105,029.20O
13:13:18136.00328446.08O
13:11:48132.001519.80O
12:02:43136.181,0851,477.52O

Redcentric (RCN) Top Chat Posts

Top Posts
Posted at 20/5/2024 09:20 by Redcentric Daily Update
Redcentric Plc is listed in the Computer Related Svcs, Nec sector of the London Stock Exchange with ticker RCN. The last closing price for Redcentric was 132p.
Redcentric currently has 156,991,982 shares in issue. The market capitalisation of Redcentric is £207,229,416.
Redcentric has a price to earnings ratio (PE ratio) of -22.41.
This morning RCN shares opened at 132p
Posted at 16/5/2024 08:03 by p1nkfish
Good overall but losing 4 larger customers = increased competition and no good reason for them to remain with RCN. Making up the lost profit on reducing cost base is less than ideal. A spoiler on an otherwise very decent year.
Posted at 14/5/2024 13:44 by boadicea
Calendar now says Thursday (16th) for updarte.
Trading is horribly thin atm with wide nominal spread.
However, don't be fooled by the trades page on advfn. The current buy price is 144p, i.e. below mid, so all trades are accredited as sales whereas they are in fact nearly balanced.

PS: Someone just cleared the last available at 144p and that has now become the bid.
Posted at 05/4/2024 11:00 by boadicea
Given bouyant demand in the datacentre field, moderation in energy costs, efficiency savings, an eagerness to expand and a strategic holding by Kestral opps fund, one really would expect more interest here. Additionally, falling inflation leads to an expectation of reduced financing costs within the time-frame of FY25.

We can probably expect an update on basic progress for FY 2024 sometime later this month which should confirm whether or not we remain on track as forecast in the outlook given in the last interim report - "The Board expects to commence FY25 at least in line with its prior expectations. With the integration of the recent acquisitions complete, FY25 will see the return of healthy EBITDA margins approaching 25% and excellent cash generation, both of which are driven by high levels of recurring revenues underpinned by long term customer contracts.".

This prospect is hardly recognised in the current valuation. Is RCN one of the many smaller companies being unfairly held back by a moribund UK market?
Posted at 11/1/2024 18:59 by petewy
Redcentric plc (AIM:RCN) Kestrel Partners LLP ("Kestrel") that on 08 January 2024 and 09 January 2024 it purchased, on behalf of its discretionary client accounts, an aggregate of 16,144 ordinary shares of 0.1 pence each ("Ordinary Shares") in the Company at an average price of £1.2635 per Ordinary Share.

Mr Oliver Scott is a partner of, and holds a beneficial interest in, Kestrel. Mr Scott is also a shareholder in Kestrel Opportunities and is therefore deemed to have a beneficial interest in Kestrel Opportunities' entire legal holding in Redcentric.
Posted at 22/11/2023 15:07 by fgump
For all its transformation and the guidance of kestrel, the share price is now lower than it was three years ago. I guess that's why they feel they need to join the board. It seems to me that the market remains unconvinced by the story and at the very least the value of the sungard deal.
Posted at 22/11/2023 10:14 by simon gordon
Was a downgrade for FY24. Kestrel joining the BoD probably means they are unhappy about the share price performance.
Posted at 24/8/2023 10:34 by boadicea
A fairly downbeat assessment of the short term future which the market seems to be taking in its stride. In the background things seem to be progressing well. It gives the impression of underpromising and potentially overdelivering, certtainly there is no sign of false optimism.
The picture should become significantly clearer by the middle of 2024. If impatient sellers force the price lower I might be interested in adding in due course.
Posted at 31/5/2023 07:30 by masurenguy
Rising costs putting pressure on Redcentric, says Downing

IT services group Redcentric (RCN) may have reported a jump in revenues, but Downing’s Josh McCathie warns it is still grappling with rising costs. McCathie holds the stock in his VT Downing Small & Mid Cap Income fund, where it makes up 3% of the £43m strategy. "Redcentric, a managed IT services business, released its results for the year ended 31 March 2023 and reported revenues up 52% to £141.8m and adjusted Ebitda up 4.6% to £24.8m. The results reflect the contribution from five acquisitions completed over the last two financial years." the manager said. However, he flagged a warning from the group and said "it continues to experience widespread inflationary increases across its cost base, primarily wage inflation, electricity costs and software licence costs."
Posted at 13/1/2023 08:53 by boadicea
An easing of the energy price spiral should be particularly good news for their sites that are not hedged on electricity cost. Similar considerations may apply to their competitors, of course.
Posted at 15/11/2022 07:27 by masurenguy
Solid update with good groundwork laid for subsequent expansion of both sales and profits. "As a result of the five acquisitions completed between September 2021 and July 2022, the Company has significantly strengthened its cyber security, hyper-cloud and consulting capabilities, and materially increased the annualised revenue base by c.70%. With these acquisitions, we feel that we now have one of the broadest product offerings in the market."

Trading update for the six month period to 30 September 2022

Redcentric is pleased to announce the following update for the six months ended 30 September 2022.

FINANCIAL HIGHLIGHTS

HY23 has seen the business continue to perform well, with both revenue and adjusted EBITDA being in line with the expectations of the board of directors of the Company (the "Board"). The Board expects to announce the following trading results for HY23:

-- Revenues of £61.5m (HY22: £44.3m)
-- Adjusted EBITDA of £11.7m (HY22: £11.9m)
-- *Adjusted net debt of £39.3m (31 March 2022: £1.5m)
-- Capital expenditure of £1.5m (HY22: (restated) £1.9m)

The adjusted net debt reflects:

-- The initial cash consideration net of cash acquired of £23.2m paid following the acquisitions of 4D Data Centres Limited ("4D") and certain business and assets from Sungard Availability Services (UK) Limited (in administration) ("Sungard");

-- An investment of £3.2m, reflecting stock forward bought to avoid significant price increases, protecting profitability, and to ensure that supply chain issues do not delay network rollout projects. It is anticipated that approximately half of this working capital investment will reverse by the end of the financial year;

-- An additional working capital requirement of £6.3m as the Company worked to onboard the customers acquired as part of the Sungard acquisition . The invoicing relating to this onboarding has now been brought up to date and hence this adverse working capital impact will reverse in H2 of the year ended 31 March 2023 ("FY23");

-- Exceptional costs of GBP4.8m were incurred in the period, £2.5m higher than anticipated due to additional integration and restructuring costs in relation to the 4D and Sungard acquisitions. Approximately half of these additional costs will result in like for like additional annual savings in the financial year ending 31 March 2024.

* Adjusted net debt excludes supplier loans and lease liabilities that would have been classified as operating leases under IAS 17

OPERATIONAL HIGHLIGHTS

The first six months of FY23 have built on the progress made in the financial year ending 31 March 2022 and have been transformational for Redcentric. During the period the Company has successfully completed two scale acquisitions and one capability acquisition for a combined initial consideration net of cash acquired of £23.2m.

As a result of the five acquisitions completed between September 2021 and July 2022, the Company has significantly strengthened its cyber security, hyper-cloud and consulting capabilities, and materially increased the annualised revenue base by c.70%. With these acquisitions, we feel that we now have one of the broadest product offerings in the market.

Other operational highlights for the period include:

-- The signing of a new GBP100m banking facility on 27 April 2022, giving the Company access to £80m of committed funds at very competitive rates of interest to support and accelerate our acquisition strategy; and

-- A significant increase in new sales orders during the second quarter of FY23 with order levels now substantially ahead of pre-covid levels. The increase in sales volumes reflects the enlarged customer base, additional capability and a restructuring and strengthening of the sales team.

INTEGRATION UPDATE

The key highlights are as follows:

-- Three months into the ownership of Sungard, we have fully integrated the business and ceased all transitional service arrangements, removing significant duplicated costs;

-- Phase one of a staff restructuring programme has been completed, resulting in a reduction in annual salary costs of £3.2m;

-- As part of the Sungard acquisition, the Company entered into short term licenses to occupy three data centre facilities with the administrator of Sungard. Of these:

o The largest facility is considered to be a long-term strategic asset and the eight-year lease has been assigned to the Redcentric group;

o The second facility is considered important in the medium term and a new three-year agreement has been signed. As part of this agreement, the short-term annualised license to occupy costs of £8.5m have been replaced by a 3 year agreement with a year 1 annual cost of £4.1m, followed by annual indexation of 3%;

o The third facility is not considered as a core strategic asset, and so this property continues to be occupied under a short-term license whilst we explore options to either sell or exit the facility;

o It was originally assumed that the license to occupy costs would be treated as part operating and part exceptional costs. Following discussions with the Company's accounting advisors, these costs have all been classified as IFRS16 leases and therefore add GBP2.6m to right of use depreciation charges in FY23. As this reclassification relates to the license to occupy period only, there will be no impact beyond FY23.

-- During the second half of FY23, several electricity initiatives will be implemented to improve the efficiency of the acquired data centres. These will result in additional capital expenditure of c.£2m. Assuming a cost equivalent to the recent government energy price guarantee, it is expected that these measures will have a one-year payback;

-- With the exception of employee synergies, the acquired 4D business has largely been left as a standalone business whilst focus was placed on migrating away from the onerous Sungard transitional arrangements. 4D will be fully integrated by the end of the financial year.

OUTLOOK

The Board is pleased by the continued progress made by the Company in the first six months of FY23 and remains confident in delivering revenue and adjusted EBITDA for FY23 in line with its expectations. Of particular note, the Board is pleased to see a substantial uplift in sales activity and order intake as a result of the additional scale, breadth of product and enhanced sales team.

The Board is cognisant of the continuing volatility of electricity prices and that this could significantly increase or decrease profitability of the acquired businesses. Unlike the acquired businesses, Redcentric has historically hedged electricity prices and this will be replicated across the recently acquired businesses once prices have stabilised.

Work continues to seek further synergies from the acquisitions completed in the period and despite some of the current economic headwinds, the Board is very confident that the Redcentric group will build on the progress shown over the last eighteen months, delivering enhanced revenue growth and EBITDA ahead of the Board's expectations in FY24 as the benefits of the acquisitions are realised.
Redcentric share price data is direct from the London Stock Exchange

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